I am new to the podcast world and have started a series with a colleague in a different location. We use Skype and each record our end of the conversation. Then we merge the two calls together and we have our podcast. Now I'm trying to incorporate some production into our endeavor. I have music and sound clips on my computer that I would like to add live to the pod cast. Is there a way to do that so that when I play a sound clip on my computer, it's both recorded on my end of the call AND my partner can hear it on his side?

However you will need a way to loop it back into your Skype mix. This can either be done with a hardware soundcard (Saffire Pro 24 or MAudio) or a program like Wire Tap Anywhere (also Ambrosia) for the Mac that allows you to to create software live audio mixes and then patch them back into one channel. Neither hardware or software solution is cheap but what you are trying to accomplish is verging on pro-grade production.

The easiest and cheapest way to do all this is to do it all in post production where you will have the most control.